From October 2023, the People's Bank of China will carry out special rectification work on refusal to accept RMB cash (hereinafter referred to as cash), and verify and investigate leads in accordance with Article 16 of the People's Bank of China Law of the People's Republic of China, which stipulates that "all public and private debts within the territory of the People's Republic of China shall be paid in RMB, and no unit or individual shall refuse to accept them". As of the end of April 2024, administrative penalties have been imposed on 8 legal entities that refuse to accept cash, and 124 cases of refusal to accept cash that have minor circumstances, timely corrections, and no harmful consequences caused by the first violation have been verified and not punished in accordance with Article 33 of the Administrative Punishment Law of the People's Republic of China. 8 cases of administrative punishment and 7 typical cases of non-punishment are hereby announced. All types of business entities are requested to comply with the relevant laws and regulations on RMB management, respect the public's right to choose their own payment methods, maintain the legal status of RMB, and jointly optimize the environment for the use of cash.
1. Administrative punishment cases
Case 1 In December 2023, the Shaanxi Branch of the People's Bank of China imposed an administrative penalty on the nine-year school in Jingyao Town, Pucheng County. On the day of registration for the fall of 2023, the school did not set up a cash collection and payment channel, and the parents of students failed to pay their tuition fees in cash.
Case Tips: Units handling administrative fees should set up manual cash collection and payment channels, and shall not refuse to accept cash on the grounds of "unified accounting and management of funds". If the method of entrusted collection is adopted, the entrusting party shall request the entrusted party to set up a manual cash collection and payment channel in writing.
Case 2 In November 2023, the Zhangzhou Branch of the People's Bank of China imposed an administrative penalty on the Zhangzhou Central Branch of Ping An Property Insurance Co., Ltd. of China. The company has a manual cash collection and payment channel, and the staff is not familiar with the business process of collecting cash, and refuses customers to pay car insurance fees in cash.
Case 3 In December 2023, the Beijing Branch of the People's Bank of China imposed an administrative penalty on Beijing Huairou Branch of Chinese Life Property Insurance Co., Ltd. The company has a manual cash collection and payment channel, and the staff is not familiar with the business process of collecting cash, and refuses customers to pay car insurance fees in cash.
Case 4 In April 2024, the Huai'an Branch of the People's Bank of China imposed an administrative penalty on the Huai'an Huaiyin Branch of Chinese People's Property Insurance Co., Ltd. The company's business premises did not set up a manual cash collection and payment channel, and the staff replied to the customer that it would not accept cash.
Case tips: Insurance companies and other business entities should enhance their staff's awareness of law-abiding, clarify the "illegal refusal to accept cash" and its legal consequences, optimize the cash payment process, improve the customer cash experience, and shall not set thresholds for cash payment, and shall not refuse to accept cash on the grounds of "many business links".
Case 5 In December 2023, the Beijing Branch of the People's Bank of China imposed an administrative penalty on Beijing Dashibank Century Automobile Sales Co., Ltd. The company does not set up a cash collection and payment channel and does not accept customers to purchase vehicle insurance in cash.
Case Tips: Business entities that provide "face-to-face" services should set up cash collection and payment channels to meet the needs of cash payment, and must not set up obstacles to cash collection.
Case 6 In February 2024, the Chifeng Branch of the People's Bank of China imposed an administrative penalty on the Chifeng Songshan Branch of China Post Group Co., Ltd. The company's financial system clearly accepts cash payment, consumers place orders online and mail documents, and door-to-door collection staff do not accept cash.
Case tips: Business entities that make appointments and transactions online, complete services or goods delivery offline, and support face-to-face collection should support cash payment, and should not refuse to accept cash on the grounds of "easy to lose on the way".
Case 7 In April 2024, the Baotou Branch of the People's Bank of China imposed an administrative penalty on Baotou Furun Real Estate Development Co., Ltd. The company has a manual collection window, which does not accept cash for deposits, area compensation and other businesses and posts notices, and consumers who pay the difference in cash for 204 yuan of housing prices are rejected.
Case Tips: Business entities that provide "face-to-face" services should set up cash collection and payment channels to meet the needs of cash payments, and must not refuse to accept cash by means of standard terms, notices, statements, notices, etc., except in cases where non-cash payment tools should be used in accordance with the law.
Case 8 In April 2024, the Wuxi Branch of the People's Bank of China imposed an administrative penalty on Wuxi KFC Co., Ltd. The company equipped the departure breakfast cart with a cash register device, but it could not be used due to software and did not have a solution for consumer cash payment, so it was unable to collect cash.
Case Tips: To carry out business model innovation, business entities should fully consider the needs of the public to use cash and possible emergencies, strengthen the planning of cash collection and payment scenarios in new business formats, improve internal control management and business processes, and prepare enough change to meet the public's demand for cash payment.
2. Cases in which no punishment was imposed
Case 9 In November 2023, a school canteen refused to accept cash. The school implements a "one-card" recharge for dining, which can be recharged and refunded in cash, but the recharge is limited to every Tuesday and Thursday afternoon, and you cannot recharge if you miss the time.
Case tips: Campuses, business parks, scenic spots and other business places that use "all-in-one card" and carry out closed management should support cash card purchase, recharge and return of cards. During the normal business period, business entities shall unblock the channels for the use of cash, and shall not adopt discriminatory and restrictive measures against cash.
Case 10 In December 2023, a restaurant refused to accept cash. The store has a manual cash collection and payment channel, and there is a cash collection record. Consumers pay cash, but store staff refuse to accept cash on the grounds that they are busy preparing food during the rush hour and have no time to collect cash.
Case tip: Business entities should do a good job of employee training to ensure that they are aware of the "illegal act of refusing cash" and its legal consequences, and shall not refuse to accept cash for any reason.
Case 11 In November 2023, an administrative fee collection agency refused to accept cash. The unit accepts the entrustment to collect traffic fines, has a manual collection and payment window, and has a record of collecting cash. The consumer planned to pay 248 yuan in the form of "200 yuan in cash plus scanning code", and the cashier of the exchange asked for a one-time payment, and refused to accept the cash because it did not accept the split payment.
Case Tips: For units that handle administrative fees by entrusting them to collect them, the entrusted party should support the manual collection of cash to meet the public's demand for cash. Cash should be collected in a combination of payment methods, and cash should not be rejected due to split payments.
Case 12 In January 2024, a coffee shop refused to accept cash. The store has a checkout counter for food ordering, and the staff refused to accept cash because they couldn't give change.
Case 13 In January 2024, a parking lot refused to accept cash. The consumer paid the parking fee with 10 yuan in cash, but the staff on duty refused to accept the cash because he could not give change.
Case Tips: The business entity shall prepare sufficient change according to the business situation, and shall not refuse to accept cash on the grounds that it cannot make change. Manned parking lots should support cash payment, and unattended parking lots should be marked in a conspicuous position with payment methods and service contact numbers to meet the needs of consumers to pay in cash under special circumstances.
Case 14 In November 2023, a supermarket refused to accept cash. The supermarket has a manual cash collection and payment channel, and there is a reserve for change and payment. Consumers use dime notes when paying, and the staff refuses to accept them.
Case 15 In January 2024, a gas station refused to accept cash. The station has a manual cash collection and payment channel, and consumers use one-yuan coins when paying, and the staff refuses to accept them.
Case tip: Cash includes banknotes and coins. Business entities should correctly understand the "illegal refusal to accept cash" and related legal liabilities, support consumers to use small denominations of cash to pay, and must not refuse to accept cash.
Source: People's Bank of China website